Ferrellgas Partners LP
) reported net loss per unit of 22 cents for the first quarter of
fiscal 2013, ending October 31, lower than the Zacks Consensus
Estimate of a loss of 23 cents. The quarter's loss was
substantially narrower than the prior-year quarter loss of 42
Ferrellgas Partners' total revenue of $362.9 million in the
quarter was 33% lower than $538.4 million reported in the
comparable year-ago period.
The lower wholesale propane price impacted propane and other
gas liquids sales, which decreased 34.8% to $335.3 million while
Other revenue increased 14% to $27.6 million.
The results were lower than the Zacks Consensus Estimate of
Ferrellgas Partners' gross profit during the quarter increased
8.8% from the comparable quarter last year to $140.1 million. The
45.6% decline in input costs to $222.8 million led to the
expansion in gross margin.
Cost-saving initiatives of the partnership have started to
yield positive results. The partnership was able to trim its
operating as well as general & admistrative expenses by 3%
and 6%, respectively, from the prior-year period.
Cash and cash equivalents as of October 31, 2012, were $8.7
million versus $8.4 million as of July 31, 2012.
The partnership's long-term debt as of October 31, 2012, was
$1.07 billion, increasing from the year-end level of $1.05
billion as of July 31, 2012.
Suburban Propane Partners L.P.
) competes directly with Ferrellgas Partners. Suburban announced
a net loss of 91 cents per common units for the fourth quarter of
fiscal 2012. The reported loss was wider than the Zacks Consensus
Estimate of a loss of 82 cents.
The Zacks Consensus Estimate for the first quarter of fiscal
2013 is currently at $1.35 per unit.
The partnership continued with its acquisition based growth
strategy and completed two buys in the first quarter of the
fiscal year. These acquisitions are part of the partnership's
long-term strategy to grow by an aggressive pursuit of well-run
The partnership continues to reap the benefits from its
cost-saving initiatives. The successful continuation of cost
saves would help the partnership to meet its cost-saving target
of $20 million for fiscal 2013.
Besides cost reduction and contribution from inorganic
sources, we believe the weather during the winter season will be
a key factor that will determine the performance of the
partnership in the upcoming quarter.
Overland Park, Kansas-based Ferrellgas Partners L.P. is a
leading distributor of propane and related equipment in the U.S.
The partnership provides propane services to Residential,
Industrial, Portable Tank Exchange, Agricultural and Wholesale
customers. Ferrellgas Partners retains a short-term Zacks #3 Rank
FERRELLGAS -LP (FGP): Free Stock Analysis
SUBURB PROPANE (SPH): Free Stock Analysis
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